In reference to all news about the lottery market for the last several months, it is clear that this industry doesn’t have its best period now. The closure of lottery shops around the world due to the COVID-19 pandemic has led to many obstacles that it is facing now. The market needs to implement new strategies to get through the crisis.
According to the SBC Digital Summit speakers, and they concur in this opinion, the majority of lotteries aren’t modern and it makes them less competitive in comparison with other gambling segments. They don’t use any innovations and don’t push for development and it restrains them from progress. Experts have said that the only way out for the business in this case is to implement more digital solutions in processes.
“Lotteries need to react fast to changes. They should pay more attention to up-to-date technologies and fit into the digital world. It is a high time for operators to think about the next generation of lottery players who want to do things using their smartphones in real time. Lotteries should adopt virtual casinos’ operating principles and transform to become like them,” said Chris Armes, a CIO of Gaming Innovation Group.
This idea was supported by Stuart Godfree, a managing director of Mkodo. He confirmed that the usage of online casinos’ patterns could improve the current situation in the market:
“Casinos provide its users with bonuses and it helps them to acquire more customers. They attract players with interesting offers and lotteries should do the same. Buying a ticket isn’t fun and it is difficult to make a really exciting experience from the lottery. Operators need to create a product that looks interesting for a new lottery player. Lottery games that engage people are a solution here.”
Jari Vähänen, a partner at the Finnish Gambling Consultants Oy, also commented on this point of view:
“The key is to understand your customer. People have many things to spend money on, not only the lottery. The main reason for them to play is dreaming about a big jackpot. Excitement is less important in other gaming verticals. So many opportunities are available for lotteries now: if they provide better services for customers, they will get more customers.”
However, in experts’ opinion, the most important thing that can help the market to survive is the implementation of mobile technologies because old solutions are too slow. They are sure that such considerable reduction has happened because lotteries don’t focus on the digital business and mobile trends in particular. Future customers will use mobile phones in retail networks and will take transactions by themselves. A mobile phone is a terminal in a pocket. In addition to this, companies can add associated products for online presence, for example, scratch cards.
Lotteries need to undergo transformations, digitalize and personalize their business more than they have done before. Speakers have suggested that lottery operators are afraid of these changes. At the same time, high-margin businesses are always pressured to innovate under difficult conditions. Experts have agreed on the fact that the pandemic is a wakeup call for this market.
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